Economy of Honduras
Overview
Honduras, the second poorest country in Central America and one of the poorest countries in the Western Hemisphere, with an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Despite improvements in tax collections, the government's fiscal deficit is growing due to increases in current expenditures and financial losses from the state energy and telephone companies. Honduras is the fastest growing remittance destination in the region with inflows representing over a quarter of GDP, equivalent to nearly three-quarters of exports. The economy relies heavily on a narrow range of exports, notably bananas and coffee, making it vulnerable to natural disasters and shifts in commodity prices, however, investments in the maquila and non-traditional export sectors are slowly diversifying the economy. Growth remains dependent on the economy of the US, its largest trading partner, and on reduction of the high crime rate, as a means of attracting and maintaining investment.
GDP
Real Growth Rate
6%
Per Capita
USD 3,300
From Agriculture
14%
From Industry
31%
From Services
56%
Labour Force
Available for Work
3
Working in Agriculture
34%
Working in Industry
23%
Working in Services
43%
Unemployment Rate
28%
Population Below Poverty Line
51%
Inflation Rate
6%
Investment as Percent of GDP
26%
Budget
Revenues
USD 2,089 (m)
Expenditures
USD 2,357 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Bananas, coffee, citrus; beef; timber; shrimp, tilapia, lobster; corn, African palm
Core Industries
Sugar, coffee, textiles, clothing, wood products
Exports
Value
USD 3,924 (m)
Commodities
Coffee, shrimp, bananas, gold, palm oil, fruit, lobster, lumber
Partners
US 70.6%, Guatemala 3.5%, El Salvador 3.4% (2006)
Imports
Value
USD 6,798 (m)
Commodities
Machinery and transport equipment, industrial raw materials, chemical products, fuels, foodstuffs
Partners
US 53%, Guatemala 7%, El Salvador 4.5%, Costa Rica 4.1%, Mexico 4.1% (2006)
External Debt
USD 3,871 (m)
Fiscal Year
Calendar Year
